You make some excellent points. One of the main aspects of these projects that remains hidden in both TMT and AVL camps is an honest, accurate and reliable financial model for each. TMT haven't come clean with an updated DFS because one suspects the cost blowouts with capex push the financials to the brink of viability. AVL have fudged their BFS by over generous co-credits and low fuel costs. I've tried to calculate a realistic NPV and IRR for both projects, and you end up needing a V2O5 price >>$10.00/lb, maybe even >US$12.00/lb. However, I still can't see any reason why the economics might be enhanced by merging the two. Practically, trying to combine the two mining plans would be an absolute nightmare, possibly dragging on for years. Look how much money and time its taken to combine GVP and Yarrabubba. I think there must be political reasons, and/or maybe a significant amount of "corporate raiding" and asset stripping of TMT's project. The sad thing is that TMT management appeared to have completely rolled over to whoever is pulling the strings.
All IMHO, DYOR
TMT Price at posting:
26.5¢ Sentiment: Sell Disclosure: Not Held
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